2 Dominant Tech Stocks to Buy in January and Hold for 5 Years

By John Ballard – Jan 11, 2026 at 3:15PM ESTKey PointsInvestors continue to underestimate just how profitable Amazon can become over time.Strong demand for enterprise AI and advertising growth continues to drive impressive gains for Google.We’re bullish on these 10 stocks ›NASDAQ: AMZNAmazonMarket Cap$2.6TToday's Changeangle-down(0.50%) $1.23Current Price$247.52Price as of January 9, 2026 at 3:58 PM ETThese stocks are poised for substantial growth.The "Magnificent Seven" are among the most profitable and cash-rich businesses on the planet. These companies are driving the growth in artificial intelligence (AI) -- a market that could lead to trillions in economic value in the coming years. Amazon (AMZN +0.50%) and Alphabet (GOOG +1.05%) (GOOGL +0.96%) are two members of this elite group of tech titans that could see substantial growth where it counts. Here's why these stocks can power your portfolio through the end of the decade. Image source: Getty Images. 1. Amazon Amazon has created tremendous wealth for investors over the last 20 years. It is a rock-solid business that benefits from several growing revenue streams, including advertising, merchant services, and subscriptions with Prime. It also just happens to be the leader in the $390 billion cloud computing market. All these businesses are growing, driving Amazon's total revenue up 13% year over year in the third quarter, reaching $180 billion in quarterly revenue. However, free cash flow has fallen over the last year as Amazon increased capital spending to support growth in the cloud market and other initiatives. After surging the past few years, the stock stalled in 2025, underperforming the market. ExpandNASDAQ: AMZNAmazonToday's Change(0.50%) $1.23Current Price$247.52Key Data PointsMarket Cap$2.6TDay's Range$242.28 - $247.8552wk Range$161.38 - $258.60Volume1.6MAvg Vol45MGross Margin50.05% Amazon spent nearly $120 billion in capital expenditures on a trailing-12-month basis through the third quarter, representing a year-over-year increase of 72%. Wall Street is concerned that this spending will pressure the company's margins, but Amazon has a long history of seeing higher profitability following these investment cycles.Advertisement This spending is primarily supporting cloud computing demand, but it also includes investments in improving fulfillment efficiency in the e-commerce business. Amazon has deployed over 1 million robots across its fulfillment network, which is significantly reducing operating costs. This could contribute to explosive growth in Amazon's free cash flow over the next five years. Amazon stock has delivered a 700% return over the last decade, supported by a significant increase in free cash flow from $7 billion in 2015 to an expected $20 billion in 2025. By 2029, analysts expect Amazon's free cash flow to exceed $142 billion. That's a 63% annualized growth rate, which could yield substantial returns for investors. Image source: Getty Images. 2. Alphabet (Google) Alphabet is benefiting from the growing demand for AI cloud services and advertising. The company's revenue continues to grow at double-digit rates, with analysts expecting revenue to increase by 14% in 2026, reaching $455 billion. AI is a competitive advantage for the company. It has been investing in AI since 2015, and the results are paying off. AI is improving the effectiveness of ad spending on Search, YouTube, and other Google services, resulting in more personalized ads for 2 billion users. Google Search saw its revenue surge 16% year over year in the third quarter. A catalyst for more growth is the recent launch of AI Max, which can deliver more relevant ads to users by matching advertisers with a larger pool of billions of search queries. ExpandNASDAQ: GOOGLAlphabetToday's Change(0.96%) $3.13Current Price$328.57Key Data PointsMarket Cap$4.0TDay's Range$325.80 - $330.8352wk Range$140.53 - $330.83Volume26MAvg Vol36MGross Margin59.18%Dividend Yield0.25% Profitable advertising revenue is contributing to strong growth in operating cash flow. Google is generating over $151 billion in cash from operations, while investing massive amounts in AI infrastructure, including chips and data centers. Despite capital expenditures increasing 58% year over year on a trailing-12-month basis, the company's free cash flow is growing. Alphabet stock returned 783% over the last 10 years, driven by a rise in free cash flow from $16 billion in 2015 to an expected $65 billion in 2025. Analysts expect Alphabet's free cash flow to grow to $157 billion by 2029. That's more than double its trailing free cash flow, which could also double the share price within the next five years.Read NextJan 9, 2026 •By Daniel Sparks2 AI Growth Stocks to Buy NowJan 9, 2026 •By Chris NeigerAmazon Is Trying to Position Itself as an AI Leader.

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This Trend Among Retail Investors Offers a Strikingly Clear Answer.Jan 7, 2026 •By Keithen DruryIs Amazon Stock a Buy for 2026?Jan 7, 2026 •By Patrick SandersThis Might Be the Most Underrated Artificial Intelligence Stock to Own in 2026Jan 7, 2026 •By Keith Speights3 Artificial Intelligence Stocks You Can Buy and Hold for the Next DecadeAbout the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackStocks MentionedAmazonNASDAQ: AMZN$247.52 (+0.00%) $+1.23AlphabetNASDAQ: GOOGL$328.57 (+0.01%) $+3.13AlphabetNASDAQ: GOOG$329.14 (+0.01%) $+3.13*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement